Cargo Volumes Rise, Revenues Dip
Qatar Airways Cargo reported a notable increase in cargo tonnage for the fiscal year ending March 31, despite a decline in revenues. The airline’s cargo volumes surged by 12.9% year-on-year, reaching 3 million tonnes. However, revenues fell by 25.8% to QAR 15.3 billion.
Market Conditions Impact Revenue
The drop in revenues reflects a broader market trend of declining airfreight rates, driven by weakened demand and increased passenger capacity as the aviation sector recovered from the COVID-19 pandemic. In contrast, the rise in cargo volumes was largely attributed to the reintroduction of belly capacity following the pandemic.
Expansion of Freighter Services
Throughout the fiscal year, Qatar Airways Cargo launched new freighter services to several destinations, including Algiers (Algeria), Bogota (Colombia), Dallas Fort Worth (US), Dammam (Saudi Arabia), Miami (US), Sharjah (UAE), and Warsaw (Poland). The airline also revamped its Middle East network, adding more frequencies to Dubai (UAE) and Riyadh (Saudi Arabia), and opening services to Sharjah (UAE).
Enhanced European and Asian Footprint
In Europe, Qatar Airways Cargo increased its presence in Amsterdam (Netherlands) and Frankfurt (Germany), with additional weekly and eight weekly frequencies, respectively. In Asia, the carrier expanded services to better cater to e-commerce customers, adding routes to Macau and charter operations to China. Passenger belly cargo flights were introduced to destinations including Chengdu and Chongqing (China), Tokyo Haneda and Osaka (Japan), Lyon, Nice, and Toulouse (France), Marrakech (Morocco), Penang (Malaysia), and Phnom Penh (Cambodia).
Fleet Adjustments and Leadership Changes
The airline streamlined its fleet by offloading two Boeing 747 freighters, now operating 28 Boeing 777-200Fs, with the latest and last outstanding order delivered in April. February saw the appointment of Mark Drusch as the new head of cargo, marking a significant leadership change.
Record Full-Year Performance for Qatar Airways
Qatar Airways reported a full-year net profit of QAR 6.1 billion ($1.7 billion), up nearly 40% on revenues of QAR 81 billion, marking a record full-year performance for the airline. The carrier’s passenger numbers increased by more than a quarter to over 40 million, with a load factor of 83% during fiscal 2023-24.
CEO Highlights Strategic Growth
“Our continued focus on profitability, efficiency, and customer experience has been underpinned by a strategic programme of network growth and fleet expansion, resulting in the highest revenues and profit margins in the history of the airline,” said CEO Badr Mohammad Al-Meer.
Fleet and Network Expansion
The airline introduced 25 aircraft over the year, including seven Boeing 787-9s, five Airbus A350-1000s, three 777-300ERs, nine 737 Max 8s, and a 777 freighter, bringing its fleet to 284 aircraft. Qatar Airways’ network has expanded to over 170 destinations, with new services complementing the restoration of operations to several cities.
